Chartered surveyors reported growth in occupation of commercial floor space, with 7% more respondents seeing a rise in sales and lettings than those reporting a fall, up from a 2% difference in the final quarter of last year. Gloomy global economic forecasts have as yet failed to have any impact.

The shortage of available floor space eased slightly over the first quarter of 2001, but chartered surveyors' rental expectations remain on a par with the previous three month period. Take up of office space in London slipped slightly for the second quarter in succession, but this is in comparison with an exceptionally strong market last year.

Lease lengths in the office sector have continued to rise relative to a year ago, but the proportion of surveyors reporting a rise has dropped back substantially, with only 5% more surveyors reporting a rise in lengths than a fall, compared with 22% in the last quarter of 2000. Industrial leases are continuing to get longer, while they are shortening in the retail sector, which may be indicative of a shift of bargaining power back towards occupiers.